SEC Chair Clayton Warns ICO Investors About Unaudited Statements

SEC Chairman Jay Clayton warned investors entering the initial coin offering market that those companies lack audited financial statements, a key investor protection required of publicly traded companies under U.S. securities laws.

“You do not have the protections that our securities laws require of public companies in many of these situations, and a fundamental protection is audited financial statements,” Clayton told the American Institute of CPAs’ annual SEC-PCAOB conference in Washington on Dec. 10.

Clayton said high quality financial reporting and audits drive better behavior and performance by companies.

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